When Corporate Debtor's One Time Settlement Proposal Is Rejected By Financial Creditor, Application U/S 7 Of IBC Must Be Admitted: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that when a One-Time Settlement (OTS) proposal submitted by the corporate debtor is rejected by the financial creditor and the debt remains unpaid, the application under Section 7 of the Insolvency and Bankruptcy Code, 2016...

IBC Cases Weekly Round Up [17th March-23rd March 2025]

Nominal Index: Manish Mukim v. Ms. Rakhi and Anr., Company Appeal (AT) (Insolvency) No. 617 of 2023 VISHNOO MITTAL VERSUS M/S SHAKTI TRADING COMPANY, 2025 LiveLaw (SC) 314 Authum Investment and Infrastructure Limited The Ruby Versus Ashdan Properties Private Limited and Ors., Company Appeal (AT) (Insolvency) No. 1566 of 2024 & I.A. No. 5973, 6380 of...

NCLT Hyderabad Lays Out Structured Buy-Out Mechanism To Resolve Deadlock Between Shareholders In Escentia Group Case

The National Company Law Tribunal (NCLT) Hyderabad bench of Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Charan Singh (Technical Member) in a company petition seeking relief under sections 241 and 242 of the Companies Act, 2013 (Companies Act) held that the actions of the Deccan Group amounted to grave acts of oppression and was not mere instances of internal...

Outgoing Liquidator Entitled To Minimum Fee Of Rs. 2 Lakh As Per IBBI Regulations: NCLT Kochi

The National Company Law Tribunal (NCLT), Kochi bench comprising Shri. Vinay Goyal (Judicial Member) and Smt. Madhu Sinha (Technical Member) has held that if the liquidator is replaced, he is entitled to a minimum fee of Rs. 2 lakh as per Schedule II of of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 for the tenure he has...

Lease Hold Rights Existing In Favor Of Corporate Debtor Cannot Be Terminated During Moratorium Period U/S 14 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that an order terminating the lease cannot be passed during the moratorium period under Section 14 of the Insolvency and Bankruptcy Code, 2016 (Code), particularly when leasehold rights are assets...

Once CoC And Adjudicating Authority Approve Resolution Plan, Payment Terms Are Final: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson) and Arun Baroka (Member - Technical), dismissed an appeal filed by the Greater Noida Development Authority (GNIDA). The appellant challenged the order passed by the Adjudicating Authority regarding the approval of the Resolution Plan for the Corporate...

Reflection Of Genuine Pre Existing Dispute From Correspondences Between Parties Is Sufficient To Reject Application U/S 9 Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when a pre-existing dispute regarding the claim exists between the parties, as clearly reflected in their correspondence, an application under Section 9 of the Insolvency and Bankruptcy...

Secured Creditor's Security Interest Becomes Part Of Liquidation Estate If Amount As Stipulated Under Regulation 21A(2) Is Not Deposited Within 90 days: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that If a secured creditor who has chosen to realize its security interest under Section 52 of the Insolvency and Bankruptcy Code, 2016 (Code) fails to deposit the amount as stipulated under Regulation 21A(2) of the...

IBC | Once Resolution Plan Approved, Dues Not Part Of It Get Extinguished : Supreme Court Rejects Post-Resolution Income Tax Demand

The Supreme Court today (March 20) declined a claim raised by the Income Tax Department to include a tax demand in a Resolution Plan after it was approved by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 (IBC).Citing the case of Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. (2021) 9 SCC 657, which held that all claims not...

Delivery Of Demand Notice To Last Known Address Of Personal Guarantor Shall Be Deemed Valid Service U/S 95(4) Of IBC: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that delivery of a demand notice to the last known address of the personal guarantor, as stipulated in the deed of guarantee, shall be deemed valid service for the purposes of Section 95(4) of...

Corporate Revival Under IBC Should Not Come At Cost Of Public Welfare Projects: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai comprising of Ms. Reeta Kohli, Hon'ble Member (Judicial) and Ms. Madhu Sinha, Hon'ble Member (Technical) dismissed an application filed by Aegis Resolution Services Private Limited acting as the Resolution Professional (RP) for Radius and Deserve Land Developers Private Limited. The application was filed against the Slum...

Application U/S 9 Of IBC Cannot Be Admitted When Debt Is Discharged By Corporate Debtor After Receipt Of Demand Notice: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that Insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) cannot be initiated if the debt in question has been discharged and settled between the parties...